(HAR Newsroom, January 8, 2025) — After two consecutive years of declining sales, the Houston housing market experienced modest growth in 2024. Homebuyers kept the resale and rental markets active despite fluctuating mortgage rates and higher home prices. As 2025 gets underway, steady demand and expanding inventory have set the stage for continued growth.
According to HAR’s December/Full-Year 2024 Housing Market Update, total property sales were statistically flat compared to 2023. Single-family home sales rose 1.3 percent to 85,163. Total dollar volume for full-year 2024 climbed 3.1 percent to $41.1 billion versus $39.8 billion the prior year.
For December, single-family home sales saw double digit growth of 16.3 percent year-over-year. Most of the housing segments experienced increases, with the luxury segment - consisting of homes priced $1M and above – seeing the strongest increase in activity. Sales in this segment climbed 64.6 percent when compared to last December.
"Following two years of declining sales, 2024 brought a welcomed balance to the Houston housing market,” said HAR Chair Shae Cottar with LPT Realty. “While higher mortgage rates presented financial challenges for some consumers, the Houston market weathered these rate fluctuations better than many other regions across the country. I believe that the strong sales activity and expansive inventory we experienced in 2024 bodes well for home buyers and sellers in 2025."
Houston’s rental market had a robust performance in 2024 as many prospective homebuyers waited to see if mortgage rates would stabilize. HAR will report on rental trends in the December 2024 Rental Market Update, which will be released on Wednesday, January 15.
2024 Annual Market Comparison
Volatile mortgage interest rates created a complex landscape for the Houston housing market during the first half of 2024. The year started on solid footing with steady sales, but there was a shift when the spring homebuying season got off to a sluggish start. Home sales were up and down through the spring and summer months. When the Federal Reserve implemented its first of three rate cuts in September to combat inflation, it provided a boost in confidence to prospective homebuyers, even though mortgage rates were not greatly impacted. However, rates did ease from the 20-year high of eight percent that was seen in 2023 to the high-six and seven percent range. Home sales topped 2023 levels from September through December.
Expanding inventory also helped fuel the increase in market activity, offering opportunities for buyers and sellers. At the outset of 2024, inventory was at a 3.2-months supply. In August through November, it grew to a 4.4-months supply, the highest level since September 2012 when the market had a 4.7-months supply. In December, inventory stood at a 4.0-months supply. A 4.0- to 6.0-months supply has traditionally been considered a "balanced market" in which neither buyer nor seller has an advantage.
May registered the year’s greatest sales volume with 8,482 single-family units sold during the month. By the time the year wrapped, 85,163 single-family homes had sold across the Greater Houston area. That is up 1.3 percent from the 84,038 homes sold in 2023.
Home prices reached record highs in 2024. In July, the average home price hit a record $443,362, topping the previous record just two months earlier when the price was $441,162. Home prices have eased since then to $425,150 in December. On a year-to-date basis, the average single-family home price increased 2.5 percent to $422,590 while the median price rose 1.5 percent to $335,000.
December Monthly Market Comparison
The Houston housing market finished the year strong with all indicators in positive territory in December. Total property sales increased for the third consecutive month. Sales were up 13.6 percent year-over-year while total dollar volume rose 20.5 percent to $3.5 billion. Active listings, or the total number of available properties, were 21.6 percent ahead of the 2023 volume with 45,714 units.
December Single-Family Homes Update
Single-family home sales totaled 7,162, up 16.3 percent from December 2023. This marked the fourth month in a row where sales were in positive territory. The median price edged up by 1.3 percent to $334,290. The average price increased 5.0 percent to $425,150.
Days on Market, or the actual time it took to sell a home, increased from 57 to 59. Months of inventory expanded from a 3.3-months supply last December to 4.0 months. The current national supply stands at 3.8 months, as reported by the National Association of Realtors (NAR).
Broken out by housing segment, December sales performed as follows:
- $1 - $99,999: unchanged
- $100,000 - $149,999: increased 27.3%
- $150,000 - $249,999: increased 17.5%
- $250,000 - $499,999: increased 14.8%
- $500,000 - $999,999: increased 18.2%
- $1M and above: increased 64.6%
HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 4,525 in December. That is up 17.6 percent versus the same month last year. The average sales price increased 8.6 percent to $431,899 while the median sales price rose 4.2 percent to $325,000.
Townhouse/Condominium Update
Townhome and condominium sales declined throughout most of 2024, with the exception of October, which saw positive sales activity. December volume was down 5.8 percent with 389 units sold versus 413 a year earlier. The average price rose 2.5 percent in December to $268,152 and the median price was statistically flat at $234,250. Inventory improved from a 3.5-months supply to 5.4 months.
Houston Real Estate Highlights for December and Full-Year 2024
- Following two consecutive years of declines, single-family home sales rebounded in 2024 with 85,163 single-family homes sold compared to 84,038 in 2023 – an increase of 1.3 percent;
- Total property sales for full-year 2024 were statistically flat at 101,864 units while the total dollar volume increased 3.1 percent to $41 billion;
- December single-family home sales climbed 16.3 percent year-over-year with 7,162 units sold;
- Total December property sales increased 13.6 percent to 8,478 units;
- Total dollar volume for December rose 20.5 percent to $3.5 billion;
- The single-family home median price edged up by 1.3 percent to $334,290 while the average price increased 5.0 percent to $425,150;
- Single-family homes months of inventory expanded to a 4.0-months supply;
- The townhome/condominium market experienced declining sales throughout 2024, and in December, volume declined 5.8 percent, with the average price up 2.5 percent to $268,152 and the median price statistically flat at $234,250.
- Townhome/condominium inventory improved from a 3.5-months supply to 5.4 months.